By Wang Shiyou
Published: 2008-01-23

EO: Disparity between these places [in China] is quite big. How was a unified standard developed? How was it used in the process?

Shi: As a result of repeated discussions, we came up with 11 indexes, which themselves were composed of over 50 second-tier indexes. The major indexes include local governments function, institutions, inter-governmental relationships, operating mechanisms, human resource systems, legal systems, administrative culture, administrative tools, public finances, social autonomy, and special systems.

The research group obtained documents, took personal interviews, collective discussions, and sent out questionnaires. We interviewed ten leaders from the provincial level, and I personally interviewed provincial party committee secretaries, and six provincial governors. In total, we held 90 interviews with 115 leaders from various governmental levels. We held 97 interviews with 876 people staffed at various government ministries and departments. At the same time, 2,579 people responded to our questionnaires, and we collected records relating to local policy, reforms, and regulations for a total of 3,787 documents.

The voice of local government

EO: After surveying so many officials across local governments all over the country, what left the deepest impression on you?

Shi: For example, reform of financial transfers and payment methods, in the East, it is widely believed that the projects not screened under proper procedures should be canceled, and earmarked projects should be reduced; the general consensus was that these projects are not in accordance with regulation. Other regions we surveyed said that not only should they be kept, they should be increased-- in scope, strength, and flexibility.

Why would it be like this? Because there are still not enough financial resources available. A county in Jiangsu province might have the government income equivalent of one or two provinces in western China. We summed up the “117 phenomenon”. There are 2,800 counties in China, the biggest of which have 2.6 million people, the smallest of which have just 20,000. The bottom barrel cost to run a county and support 7,000 officials and staffers is 100 million yuan a year. In western China, GDP is already low-- you tell me, what can they do?

The East specifically felt that government should lay more stress on getting a handle on social management and public service; in the West, Central, and Northeast, the big demand is for more investment of time, energy, and resources in developing the economy. It was to the extent that even some Central and Northeastern leaders were saying, of course we want to invest most of our energy in social management and public service. But to do this there must be a strong economic foundation, and if GDP and incomes don't increase, while we bear massive social and political responsibility, how could it be OK to not seize the economy?

With the recent system, investing companies have been fond of dealing with local government because the latter has the final say. Not only are they going after mayors, but local party secretaries too. And so in these areas quite a lot of leaders are going out to discuss these projects personally.

EO: What kind of differences in opinion do they have over how to reform administrative management in government?

Shi: Throughout the survey of the 14 areas we found unanimous agreement that there are a lot of problems and abuse, deeper reforms are urgently needed, and furthermore, reform must be pushed from top to bottom. Not one survey disagreed with this.

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